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Indian economy grows 7.6% in Q2 FY24; nominal GDP up 9.1% in Q1: SBI

05 Dec '23
2 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • India's economy grew by 7.6 per cent—better than consensus—in Q2 FY24 on the back of buoyant growth in manufacturing (13.9 per cent) and construction, while the gross value added grew by 7.4 per cent, the State Bank of India said in a newsletter.
  • With 7.7 per cent real GDP growth in FY24 first half, the growth for the full fiscal would be around 7 per cent.
The Indian economy grew by 7.6 per cent—better than consensus—in the second quarter of this fiscal (Q2 FY24) on the back of buoyant growth in manufacturing and construction, while the gross value added (GVA) grew by 7.4 per cent, according to the State Bank of India’s (SBI) latest EcoWrap newsletter.

Nominal GDP growth came at 9.1 per cent year on year (YoY) in Q2 FY24 compared to 8 per cent growth in Q1.

In Q2 FY24, India’s manufacturing sector grew at a robust pace of 13.9 per cent compared to 4.7 per cent in Q1 and 3.8 per cent in Q2 FY23.

Agriculture, the most consistent sector since pandemic, grew by merely 1.2 per cent in Q2 FY24 (18-quarters low). Industry grew by nine-quarters high to a whopping 13.2 per cent during the quarter compared to 5.5 per cent in Q1.

With 7.7 per cent real GDP growth in the first half (H1) of FY24, the overall growth for the full fiscal would be around 7 per cent (assuming 6-6.2 per cent growth in H2), the newsletter noted. There are chances though that it may cross the 7-per cent mark in FY24.

Core GVA though registered a deceleration sequentially and grew by 8.4 per cent YoY in Q2 FY24 compared to 8.7 per cent YoY in Q1 FY24, but was much higher than 5.9 per cent YoY growth in Q2 FY23.

ALCHEMPro News Desk (DS)

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